>> the budget isn't actually legally binding. it is not a law, so it has the guidance of what you're supposed to do. and there is no repercussion of the budget isn't followed. we passed the budget and blew through that budget last year. >> president for the committee for responsible federal budget talks about the federal budget process and what to expect from the new congress and trump administration. hard forssue is so politicians to vote the right way, which means paying doing things left or paying for more. sense when you are in a recession, it is a make sense when you're economy drops. we have to make these hard changes, and they involve straight up raising taxes, cutting benefits. is announcer: sunday night at 8:00

eastern on c-span's "q and a." arizona state university professor jonathan barth teaches a class about the rise of andrew jackson and his presidency. it focuses on jackson's clashes with wig party members henry clay and any webster and the bank wars of the 1830's. class is about 55 minutes. >> good morning everybody, and welcome to american history. .y name is jonathan barth you all know me as professor barth. i am a history professor at arizona state university, in conjunction with two stellar, world-class programs, and there they are on the screen. the school of historical,

philosophical, and religious studies, great program. and then also the center for political thought and leadership, another stellar program if this lecture intrigues you. you should check out our center. we are doing some big things. if you are interested in morning -- in learning more about yours , www.professorbarth.com, you can read about me on that website. politicians have passed. alexander hamilton died in a duel in 1804. james madison, pictured on the right, retired from politics and dies in 1836.

john adams and thomas jefferson , july 4,e same day 1826, 50 years to the day of the signing of the declaration of independence. pretty incredible. you can't make something like that up. but america is changing. is sweepingolution the young republic. mass commercialization, profit-making, new opportunities for investment. entrepreneurship, a burst in the population. look at that population explosion from 1 million and -- from onelion 13 million in0 to

1830. new england producing textiles and other manufactured goods. outside of the cities, outside of new england, and agricultural boom in ohio, pennsylvania. wheat exports off the charts. kotten, that rug of a plant, creating that soft, durable , spreading all throughout south, entrenching that slave system deeper and deeper. if you're going to have textiles, cotton, wheat, you need transportation. .e have roads built steamboats by the 1820's and

1830's trekking up and down the mississippi river. built all across the country, the most famous being the erie canal, completed in 1825, connecting the hudson river to lake erie. what an accomplishment that is. if you have can house and factories, you need credit. here too we have lots and lots of credits. -- sprouting up all across the united states. several hundred banks by the 1820's. -- eggs areithin chartered by the states and stay within that particular state boundaries. staying on top of those state banks is the mother bank, the central bank. the bank of the united states.

this is the second bank of the united states. if you recall from earlier in the semester, there was a first bank of the united states. 1791, alexander hamilton pushes through congress a bank of the united states. this bank a private bank with stockholders and dividends. this bank, hamilton says, will benefit not only financial interests, but will benefit the country, the public. how will it benefit the public? because the u.s. treasury will deposit money in the bank coming in from taxes and the treasury can borrow money from the bank. it has a 20 year charter but lots of opponents. the chief opponent, thomas jefferson hates the bank. -- the bank, jefferson

believes, is an institution that impairs american liberty by elevating to power a wealthy financial elite. jefferson opposes it. jefferson comes to power in 1800 , the first banks charter expires, but one year later, a war iraq with britain. a very expensive war -- a war rupts withwar e britain, a very extensive war. thomas jefferson charters a second bank of the united states and this bank, much like the first, also will have a 20 year charter. this charter will run out in 1836 and presumably, congress and the president, in good faith, will renew the charter. so there you have it.

after the bank is chartered, you will recall from the last lecture, the panic in 1819 explodes. this massive bubble and western land speculation caused largely by the bank and the new bank currency. the country recovers from the panic of 1819 fairly quickly, so the second bank of the united states survives that panic and goes into the 1820's with very little opposition. most americans by the mid-1820's have come to accept the bank, the market revolution is fully underway. it is not just the economy that is changing. it is the political arena that is changing. parties, theical whigs and the democrats. andare these whigs democrats question mark

representing new england -- who democrats?higs and representing new england, one of orators, daniel webster. have john quincy adams. whig.o, is a most famously, henry clay, hailing from the state of kentucky. clay ends up running for president five times. just can't get in. he can't seem to do it. nonetheless, henry clay is one of the most important political figures in american history.

henry clay has an american system. that american system is threefold. henry clay says first, we need onhave protective tariffs american manufacturing. clay, when heenry becomes secretary of state under president john quincy adams, adams signed into law a new tariff, raising it from 25% to 45%. that is one heck of a tariff. hy did they do that? to protect american manufacturers and textile goods. clay also says we need federally funded internal improvements. using federal dollars to finance the buildings of roads, canals, bridges, and so forth. we needlly, clay says,

to recharter that bank of the united states. -- excuse me,on claye hamilton, however, frames his defense of the bank of the united states in common man rhetoric. hamilton said the bank is good for financial interests. clay says the bank is good for farmers. the bank is good for mechanics, for manufacturers, for the country as a whole. we need to recharter this bank, and there is the whig party platform. they support utilizing the powers of the federal government to stimulate economic activity, and they adopt a broad interpretation of the constitution. , theederal government

togs say, do have the right engage in this activity. mostly from new england, but also from the west. west, and hethe hopes his improvement in the banks will get some western votes. they have some opposition, and there is that democratic party. they opposed the democratic system. they adopt a strict interpretation of the constitution. a very limited view of the federal government's powers. the democrats appeal to farmers, wealthy plantation owners in the south, but also to common, ordinary people, wage earners, working-class laborers in places like new york. new york is a hotbed for democratic activity.

buren, aartin van democrat, later president of the united states. he later leaves the democratic party and joins the antislavery party. we will get to that in a future lecture. representing the south for the democrats, we have another legendary figure, john c calhoun. defender ofabid slavery, it also a rabid opponent of the terrace. he hates that terrace -- that tariff. thealls it the terrace -- tariff of abominations. , as vice, in secret president of the united states,

eight -- a- authors nullification of the tariff. it puts the idea in their heads. have andrewt, we jackson. there he is. .he man probably the most colorful president in united states history, almost objectively. re.iant of a figu he was very tall for that day and age. eyebrows,ny, bushy

hairbrush high above a very large forehead with piercing blue eyes. jackson was a hot tempered man. he was a bit stubborn, and oftentimes bullheaded. he had strong convictions and he knew when he was opposed to something, he stood up to that system. nicknames as well. he went by the name old hickory. tough as old hickory wood. his second nickname, you will believe this, shark knife. -- sharp knife. what is andrew jackson story? he was born in 1767 in north carolina. and his parents

died at an early age, so he was an orphan raised with no parental restraint. as a young boy, he got into brawls and fights. he wasn't all that interested in learning or reading. jackson was nine years old at the time of the american revolution. he joined the militia as a messenger. at one point, he ran into a british officer, and the officer told him, clean my boots. cleaning your't boots. young andy,slashed leaving a permanent scar on his left hand and the left side of his head. jackson went on to found the state of tennessee.

on to the state of tennessee. president in united states history has ever killed a man, that's andrew jackson. and fightse military the creek indians in 1814. fights the seminole indians and -- and fight a spectacular victory against the british in 1817. the war was already over, but that doesn't seem to matter. this elevates him to celebrity status. he had some political experience. he served two years in the u.s. senate, but that was about all. jackson was also very wealthy.

very, very wealthy. the hermitage starts out, 1804, jackson has nine slaves. by the 1830's he has well over 100 slaves. most common people cannot afford any at all. he is a very wealthy man, very well-to-do. jackson enters the senate in 1823. in 1844 he runs for the presidency, a four-way race between jackson, adams, crawford, and clay. the popular vote, 42%. he also wins the most electoral votes, but jackson does not win a majority of electoral votes. so the contest goes to the house of representatives. henry clay is speaker of the house. he cannot stand andrew jackson. with clay strikes a deal

john quincy adams and says, i will get the votes you need in the house of representatives if you make me secretary of state. in deal is made, adams wins the house of representatives and is elevated to president. henry clay is secretary of state. , andw jackson is furious about i will get my revenge. in four years, he does. contest, jackson wins in a landslide. look at that electoral map. quite an impressive victory. how does he do it? the answer is very simple. democracy. benefits from universal

male suffrage. we call this. jacksonian -- we call this period jacksonian democracy. property qualifications for free men are eliminated. double the number of voters in 1828 then in 1824. jackson uses this to his advantage and wages a political campaign that utilizes a form of politics we call populism. is a political term that has come up quite a bit in the last few years. what is populism? ideology, pert an se. you can find populism on the left, on the right. populism is a style of politics

interests, to the hopes, fears of common, ordinary people. peoplets tend to pit the versus the elite, the people versus the establishment. populists warn of nefarious forces in positions of power, whether those positions of power are in government or the corporate world. the various forces. -- nefarious forces. populists often benefit from charismatic personalities. very often, you will see populists emerge who use the sheer force of personality to rally people around them and use that charisma to attack what he corrupt,t least,

entrenched interests. that's what populism is. andrew jackson is a populist. is inaugurated in 1829. in celebration of his presidency, he throws a party. opens up the white house lawn to the public. hundreds of people from the round -- from around the country pour into the white house lawn. common, ordinary, everyday americans, sleeping on hotel room floors and hallways, packed into the white house lawn. a spiked punch bowl and whiskey -- is beingked passed around. the people are ready for a jackson administration. as you can imagine, these guys don't like it one bit. can you imagine what daniel

webster thought of something like this? he is not going to like it too much. the country is ready for jackson. the question is, what is this man going to do? there is no telling. he is a loose cannon. what is going to happen? says all right, we lost that election. i'm going to put through my american bill, and he begins with internal improvements. clay says we need a road. we've got all these farmers from my home state of kentucky, we need a road that stretches from lexington kentucky -- from lexington, kentucky along the ohio river. dollars tose federal

build that road. deskill goes on jackson's after it flies through congress. jackson responds and vetoes the bill. vetoesthe first famous in presidential history. clay, very upset. this is just the beginning. , you vetoed my internal improvements bill, let's try another plan for the american system. riff, the a new ta tariff of 1832. it seems to contradict clays program. riff from 45% to 35% area why does clay do this? tariff ofecall, that

abominations in 1828, south carolina and other states in the south are very angry about this. clay fears that 45% is pushing it. , highower it a little bit enough still, but just a little bit to soften that opposition. the bill arrives on andrew jackson's desk. president jackson signs the bill . all sounds good. south carolina is not pleased. riff of 1832.the ta south carolina says not enough. this is unconstitutional. we have a right to declare it null and void. if you do not respect our nullification of this bill, we

secedecceed -- we will from the united states. what is an jackson going to do what is andrew- jackson going to do? jackson could not be more furious with john c calhoun. for jackson, this is an affront to his authority as president. jackson signed the bill. "to say that any state may, at pleasure, secede from the union, is to say that the united states is not a nation." he asks congress to pass a force -- thatt will prevent

will send a few thousand u.s. troops into south carolina. jackson prepares the u.s. navy, now off the coast of south carolina. jackson is ready to invade the state of south carolina. what is going to happen? we are in the brink of civil war. henry clay, at the last moment, passes a compromise in the midst thehis crisis that lowers tariff gradually over a ten-year. -- over a 10 year period. lowered to 25%. south carolina backs off and .ccepts the tariff calhoun does not like jackson.

probably not any more than henry clay does. jackson called their bluff. the south carolina legislature nullified the force bill. jackson said, whatever. go ahead and do that. henry clay says, well, i never thought i would say this andrew, but thank you. clay, i'm notoh, done. clay says, you are not done? what do you mean? jackson says, there is one other thing. the bank. clay says, the bank? it's funny you mention that, because i was thinking that maybe we would go ahead and

recharter this bank early. why not? we don't need to wait until the last moment. it's 1830 two, let's get going and recharter this bank. you are on board with that, right, mr. president? well, not only am i not on ready mr. clay, but i am to wage war against this bank of the united states. and here we have it, the bank war. one of the most germanic events in united -- one of the most dramatic events in united states history. whigs in congress was to recharter it early. jackson, to their surprise,

declares his opposition to the bank. or does it come from? it seemed -- where does it come from? it seems to come out of nowhere. he did not run his campaign auto -- on opposition to the bank. all of a sudden, jackson unleashes a torrent of insults. first of all, jackson says the bank is unconstitutional. the bank, jackson says, is a monopoly. and unconstitutional monopoly. not only is ativan oddly -- not only is it a monopoly, it is the monster, jackson says. he warns of the bank is reach art are, we will see in this nation the creation of a new moneyed aristocracy. a financial elite that will

overthrow this young republic. we must do everything we can to stop this nefarious thing, this den of vipers, he calls it. pretty strong language. he also called it the hydra of corruption, that mythical, multiheaded beast. jackson says this is a hydra of corruption. what evidence does he have? is it truly corrupt, as he says? jackson points out 59 members of stock in the bank of the united states. they have a financial interest in pushing this recharter through. not only that, daniel webster, serving in the senate, is also a director of this private bank. fromra of corruption jackson's point of view. and i, andrew jackson, and going

to take this bank down. henry clay cannot believe it. you're mad, henry clay says. jackson says, you're mad. i can't believe you're doing this jackson. , how manyys, clay times are you going to run for president? times, three times, four times, five times? how many times have you got to lose before you realize that you can't win? clay is out of his mind, can't believe this is going on. you're bluffing, clay says. i'm not bluffing, mr. clay. i'm going to take this bank down if it's the last thing i do, believe me. i am going to do it. clay does not believe jackson. is in an uproar. all of a sudden, what is going to happen? should we side with clay? should we side with jackson?

jackson has some enemies. not just clay, but the president of the bank himself, nicholas bittle. a man who could not be more opposite from andrew jackson. ,hey shared something in common there are both very determined, stubborn, and bullheaded. biddle was extremely well-educated. andrew jackson didn't have a college education. excludingresident, george washington, that did not have a college education. biddle, at age 10, admitted to the university of virginia.

he transfers to princeton university at age 15, and he is a genius. a financial wizard. he knows what he is talking about. but that is also his downfall. arrogant, a bit pretentious. ,ecause of that pretentiousness he looks at someone like jackson , is this really going on? he doesn't know what he's talking about. he sees jackson as an unsophisticated dimwit. he doesn't have any idea what he's talking about. but the country in an age of jacksonian democracy, who are they going to side with? earned theddle nickname czar nicholas.

here's the cartoon, old hickory and bully nick going at it. not only do we have nicholas biddle, we also have an election coming up. jackson versus clay. of presidential election 1832. what an election. the drama. look at this. unbelievable. the future of the country, financially speaking, hanging in the balance. you cannot find to greater two greater find opponents. clay, and conduction with daniel webster, has a plan. clay pushes through congress that summer, just a few months before election day, a bill to recharter the bank of the united

states. why does clay do this? clay says, i think jackson is bluffing. , in an election year, he would do something so reject a bold as to bill like this. the bank bill passes the house. the bank bill passes the senate. the bank bill arrives on the president's desk. veto. jackson stuns the world and vetoes the bill, unleashing a veto message in which he rails against the bank of the united states. reprinted in newspapers all across the country, now we have an election. this question of the bank is on everybody's mind. it is the number one issue. everyone is talking about it. here's another cartoon. i love that cartoon. it's a pro-jackson cartoon, that

hydra of corruption. jackson going up against that financial beast. it's a hard campaign for jackson . nicholas biddle flexes his muscle, and on behalf of the bank, gives clay a $50,000 campaign donations. what a lot of money for those days. but the bank, four years already, has been funding and a loaning money to newspapers all across the country. that press, all of a sudden, a couple months before the election, piling onto jackson. things look really bad. what is he going to do? is he going to win? things don't look good, but jackson is confident. in the midst of this trial, jackson says, "the bank is

trying to kill me, but i will kill it." what happens? the election occurs. election day comes about, victory for jackson. jackson wins the election in a landslide. clay wins five states, jackson takes the bulk of the states. you will notice, that south carolina refuses to vote for jackson in the middle of that nullification crisis. victory for the jacksonians. this cartoon, 1833, pretty interesting. a little back story, and graduate school i took a digital history course. we had to take an old photograph or old black-and-white cartoon

and use photoshop to color it in. i have never used photoshop, so i taught myself, about this party was interesting and in bad shape. i took this cartoon and did that. not bad for a beginner, right? look at the imagery in this cartoon. pretty incredible. standing behind jackson, the common man, enthusiastically patting him on the back. the bankers, financiers, running away in fear. the newspapers, the press, all spread out on the ground. they been defeated. and lookhe demon face at the following columns -- the falling columns. for those familiar with the gospels, there was one time that jesus became violent. when was that?

whipjesus pulled out his and drove out the money changers from the temple, saying get out of my temple to those moneychangers. jackson, like christ, has driven the moneychangers out of the temple. this is a phenomenal victory for jacksonian democracy. but it is not over. jackson, 1830 three, you'll notice, that the charter doesn't run out till 1836. jackson says, i have got to put up with this bank for three more years? i can't do that. there's no telling what these guys will try to pull. i got to kill this bank now. sure enough, after he wins the election, he removes all federal deposits, all treasury deposits from the bank, starving the bank , removing those federal

deposits early and transferring them to state banks, pro-jackson state banks. the bank must shut down. banks,ro-jackson state by jackson's opponents, are called pet banks, pets of age or jackson. banks of the jackson. look at this. tramplingw the first over the u.s. constitution. overstepping his constitutional authority. the whigs say, born to command. this guy has taken some dictator like steps. he is to king like, they say.

you'll notice, what is that document jackson is holding up driving the bankers out? order of the removal of the public moneys deposited from the u.s. bank. that is in reference to the removal of federal deposits. years later, when jackson was on his deathbed, he is asked, what was your most proud compliment? jackson has four words. i killed the bank. his protestant compliment -- his proudest accomplishment. for 77rs in this -- years in this country, no central bank. in 1913, the congress chartered a new central bank called the federal reserve. this federal reserve, we could

do a whole class on the federal reserve. in short, one of the country's wealthiest financiers in u.s. jpmorgan, designed the j.p. morganrve -- , designed the federal reserve. it loans out the money at 1% or 2% interest to leading banks, goldman sachs, jpmorgan, bank of america, and then they landed out at a higher rate of interest, making profit from the difference, to ordinary people like you or to businesses. more often than not, they will use that money created and lend

it to hedge funds, futures, derivatives. it is a very important institution. a cornerstone of the current day banking system, of the currency. if you look very closely at a one dollar bill, it doesn't say u.s. treasury note at the top. --s his federal reserve note it says federal reserve note. same if you look any five dollar bill or $10 bill or $20 bill. look at that. there he is. andrew jackson himself. that's a strange. what is he doing on that bill? call me crazy, but that almost looks intentional. mi right?

-- am i right? almost like a gotcha, we win. like if you are a big game hunter and kill some game, you take that head and mounted on a wall as a trophy. or maybe i'm wrong, maybe they just forgot that jackson was totally opposed. one way or another, pretty interesting story. what happened in the short-term effort -- short term after jackson's presidency? martin van buren defeats daniel webster in the next election. he runs into some troubles, a new financial panic. the panic of 1837. all those pet banks that received those federal deposits use those deposits, pyramid from them, create new credit.

over speculation creates a land bubble. the bubble pops in 1837. the democrats become extremely unpopular across the country. gs'turn --whi whi gs' turn. they say they are going to run a war hero. because everyone loves war heroes. euro of the battle of the canoe in 18 -- the winner of the battle of to the canoe -- the battle of tippecanoe. planner,r, a virginia was a jeffersonian, but he thought jackson was too kin g-like.

they were right, look at that landslide. they overwhelmingly win the election. they control the house, the senate, the presidency. henry clay, rubbing his hands, ready to go. william henry harrison delivers his inauguration speech. a storm comes through washington dc, pouring down rain during the speech. in that rain, william henry harrison, 60 years old, comes down with pneumonia and dies one month later. unbelievable. now, john tyler is president. totally not what we planned, clay says. that's ok. tyler is not jackson, at least. we are going to push through a new bill. clay pushes through a new bill for a bank. this time he calls it something

different. he calls it the fiscal bank. it flies through the house, the senate. gets on john tyler's bill, veto. clay can't believe it. clay pushes through another bill, this time we won't even call it a bank. that's how much the country hates banks. they call it the fiscal corporation, the same thing, but renaming it. the through the house, senate, reaches tyler's desk, veto again. john tyler vetoes the bank bill twice. clay can't believe this is happening. we are going to have to wait four more years, clay says. this is unbelievable that we have to put up with this. they wait four years. finally, clay says, i'm doing it this time. i can't trust anybody but myself.

he runs for president against james k. polk and loses the election. poor henry clay. that's the bank war episode, and it's a fun episode, i think, however you feel about the bank war. it's an interesting event. but there is a darker side to jackson. a darker side to his presidency. a darker side to populism. andrew jackson, during his and ministration, we have one of the events incruelest u.s. history. that of course is the trail of tears, the removal of roughly 100,000 native americans from the old south west.

cotton is the big fad of the day , plantations spreading across the south. standing in the way of those plantations are 125 native americans. the creek, the cherokee, the seminole, other groups. and830, both the whigs democrats push through the indian removal act, giving the president permission to tootiate with indian tribes remove them from the old southwest into a new territory, indian territory, what is today oklahoma. this saying he wants to preserve indian culture. we are going to move them forcibly into oklahoma, where they will forever be able to

live in peace. a few years later, settlers arrive in oklahoma and want that land as well. jackson does run into an opponent. that opponent is the supreme court, because in 1831, the cherokee sue the state of georgia. it goes all the way to the supreme court, and chief justice john marshall rules in favor of the cherokee. he says, removing thereon land is unconstitutional. ,ackson, in typical manner responds to chief justice marshall and says, justice marshall has made his decision, now let him enforce it. and he completely ignores the decision and the indian removal goes through the most infamous

episode, the trail of tears in 1838 and 1839. lecture, we will look a little closer at cherokee civilization, because they made a really strong effort to try and comply. it wasn't enough. from0 of them removed georgia to oklahoma on a journey on foot that was 116 days. terrible conditions. roughly one in four die of disease or malnutrition. that's 4000 cherokee. just to give you an idea, there's the route of the indian removal. this will give you an idea of how bad things were.

there was a confederate soldier after the civil war from the state of georgia who had this to say about the trail of tears. waraid, "i thought to between the states and have seen many men shot. but the cherokee removal was the cruelest work i ever knew." and so, in conclusion, what can we say about jackson? what can we say about democracy? what can we say about populism? there are a lot of lessons here. good.acy can do a lot of ,emocracy can do a lot of good populism can do a lot of good, strong personalities can do a lot of good. but all three of those things can also do a lot of bad, as well. populism or a jacksonian style democracy is risky, like rolling the dice. you don't know how it is going to turn out.

don'tf the time, people go for populism, but during times of uncertainty, times in which there is a sense that there is a corrupt, elite system , that often will give an avenue , good or bad, demagogue or well-meaning, and that avenue can often be exploited. so you have to be very careful in moments like that. jackson, what we make of him? i'm not sure. interesting guy. next class, we have a new republic. , and thatic of texas republic of texas is going to apply for statehood in the united states, and that is going

to cause its own controversy. so, that does it. enjoy your weekend, and i will see you on monday. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] [captions copyright national cable satellite corp. 2016] visit our website or downloaded on itunes. announcer: next, as the centennial of the entry into world war i approaches, we discuss economics and the role of big business in the u.s. response to the great war.